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ACQUISITIONS

3 Months Ended

Mar. 31, 2023

ACQUISITIONS

ACQUISITIONS

NOTE 2.     ACQUISITIONS

SL Power Electronics Corporation

On April 25, 2022, we acquired 100% of the issued and outstanding shares of capital stock of SL Power Electronics Corporation (“SL Power”), which is based in Calabasas, California. We accounted for this transaction as a business combination. This acquisition added complementary products to Advanced Energy’s medical power offerings and extends our presence in several advanced industrial markets.

The components of the fair value of the total consideration transferred were as follows:

​

​	​	​	​
Cash paid for acquisition	​	$	145,693
Less cash acquired	​	​	(3,484)
Total fair value of purchase consideration	​	$	142,209

​

We allocated the purchase price consideration to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess allocated to goodwill.

​

​	​	​	​
​	​	Fair Value
Current assets and liabilities, net	​	$	11,990
Property and equipment	​	​	3,567
Operating lease right-of-use assets	​	​	4,640
Deferred taxes and other liabilities	​	​	(2,335)
Intangible assets	​	​	57,600
Goodwill	​	​	71,387
Operating lease liability	​	​	(4,640)
Total fair value of net assets acquired	​	$	142,209

​

The following table summarizes the intangible assets acquired:

​

​	​	​	​	​	​	​	​
​		​	​		Amortization		Useful Life
​	​	Fair Value		​	Method	​	(in years)
Customer relationships	​	$	50,500		Straight-line		10
Technology	​		7,100		Straight-line		5
Total	​	$	57,600

​

To estimate the fair value of intangible assets, we used a multi-period excess earnings approach for the customer relationships and a relief from royalty approach for developed technology. Goodwill represents SL Power’s assembled workforce and the expected operating synergies from combining operations. We expect approximately 85% of goodwill to be deductible for tax purposes.

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- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-URI https://asc.fasb.org/topic&trid=2303972

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 5
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472

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- References

No definition available.

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